Trane Technologies plc (TT)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 3,500,100 | 2,894,000 | 2,418,900 | 2,023,300 | 1,532,800 |
| Revenue | US$ in thousands | 19,814,100 | 17,423,000 | 15,750,300 | 13,892,000 | 12,196,000 |
| Operating profit margin | 17.66% | 16.61% | 15.36% | 14.56% | 12.57% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $3,500,100K ÷ $19,814,100K
= 17.66%
Over the five-year period from December 31, 2020, to December 31, 2024, Trane Technologies plc has exhibited a positive trend in its operating profit margin, showing a consistent improvement each year. The operating profit margin increased from 12.57% in 2020 to 17.66% in 2024, indicating the company's ability to effectively control its costs and generate more profit from its core business operations.
This steady growth in operating profit margin reflects Trane Technologies plc's efficiency in managing its operating expenses relative to its revenue. The company has been able to enhance its profitability over the years, likely through various strategies such as cost optimization, pricing adjustments, or revenue growth initiatives.
The progressively higher operating profit margins demonstrate Trane Technologies plc's improving operational performance and financial health. This trend suggests that the company is becoming more robust in generating profits from its operating activities, which could lead to enhanced shareholder value and sustainable growth in the future.